As the profit of mobile phone chips continues to decline, IoT chips have gradually become the focus of major chip manufacturers. Chip giants including Intel, Qualcomm and MediaTek have made efforts to make the Internet of Things. Industry insiders said that in the case that domestic chip technology is difficult to support the rapid development of the industry, it is a good strategy for enterprises to switch to the IoT chip market.
With the changes in market and user demand, the mobile phone chip market in 2016 has presented some new features, and many companies are building their own leading path. Qualcomm transformation, MediaTek launched high-end, Apple, Samsung, Huawei and other mobile phone manufacturers continue to adhere to self-developed chips, ZTE, Xiaomi and other joined the self-developed chip army, the entire market can be described as fierce competition.
Under the fierce competition, the quality requirements of mobile phone chips have gradually increased, and the market profits have gradually declined. Many mobile phone manufacturers have been eliminated, and many upstream chip manufacturers have also withdrawn from the mobile phone market, such as Broadcom, Nvidia, Intel, etc. . At present, in addition to Samsung, Apple, Huawei HiS, which are mainly used by their own mobile phone manufacturers, only Qualcomm, MediaTek and Spreadtrum, and these surviving companies seem to be not good.
According to the third quarter 2016 financial report released by MediaTek, Q3 MediaTek's total revenue reached NT$78.43 billion, up 8.1% quarter-on-quarter and 37.7% year-on-year; net profit was NT$7.83 billion, up 18% quarter-on-quarter and down 1.6% year-on-year. .
It is not difficult to see that the low-end and mid-range mobile phone market does indeed restrict the development of MediaTek. If you switch to a new field, you may be able to achieve new results, such as the Internet of Things. Industry insiders analyze that with the IoT chip will become the focus of the next stage of chip manufacturers.
At present, the Internet of Things chip plays a very important role in promoting intelligent manufacturing, intelligent agriculture, intelligent transportation, smart medical care, and intelligent environmental protection. Therefore, under the premise that the technical strength of domestic chip manufacturers is difficult to support the rapid development of the industry, it is also a reasonable choice to take the Internet of Things chip as the entry point and accelerate the pace of localization of high-end chips.
Intel, which previously failed in the mobile chip market, has already laid out the IoT chip market. As early as 2014, Intel has released the IoT platform, which covers the fields of intelligent hardware devices, medical devices, vehicles and industrial machinery. Subsequently, Intel successfully entered the smart car and driverless field.
In addition, chip giant Qualcomm aimed at this market "blue ocean." Not long ago, Qualcomm announced that it would acquire NXP for a price of US$47 billion and enter the field of automotive electronic chips. Since then, Qualcomm has launched the latest embedded Snapdragon processor for IoT applications.
Of course, the field of automotive chips can only be regarded as the "tip of the iceberg" in the entire IoT chip market. After all, under the huge smart device Internet road in the future, more intelligent chips are the core of development. As a result, it brings an excellent turnaround opportunity for chip makers who are currently in trouble.
Now MediaTek has also begun to focus on the development of IoT chips. It is reported that MediaTek will invest in a company of approximately 995 million yuan and acquire a 39.36% stake in the company. It is reported that the company invested by MediaTek is a online map supplier of NavInfo. Through this investment, it can strengthen the cooperation relationship with NavInfo and accelerate the layout of the Internet of Things market.
As for whether MediaTek can wash its "low-end brand" in the IoT chip market, it depends on whether it can win the commanding heights in the Internet of Things. However, from the current point of view, MediaTek still has a long way to go. It is believed that in the near future, chip makers will compete fiercely in the Internet of Things market in the same way as in the mobile chip market.
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